Glossary

Conversion rate is the share of people who changed their status within a business process.

CR (conversion rate) is the conversion from clicks to sign-ups: CR = sign-ups / clicks * 100%

CTR (click-through rate) is the conversion from banner impressions to clicks: CTR = clicks / impressions * 100%.

Funnels are a way to display the path users take in order to buy a product and the share of users who proceed to the next stage.

Gross profit is the difference between turnover and prime cost.

Gross profit margin or gross margin is the ratio of gross profit to revenue.

Net profit is the difference between operating profit and taxes and credits.

Operating expenses are the company's expenses on core activities.

Operating profit is the difference between gross profit and operating expenses.

Operating margin is the ratio of operating profit to revenue.

Prime cost is the money the company spends to acquire a product.

ROI (return on investment) is a metric of investment quality. It is calculated using the formula ROI = (net profit - investments) / investments.

ROMI (return on marketing investment) is a metric of investment quality for marketing campaigns. Its formula is ROMI of ad campaign = campaign's gross profit / expenses.

Turnover or gross revenue is the amount of money that customers paid to the company.